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US: NAHB housing market index falls in August to 49, its lowest level since May 2020

The US NAHB housing market index has fallen six points in August, falling back to 49 points from 55 in July, and reaching its lowest level since May 2020. The market consensus expected the indicator to remain unchanged at 55.

The builder confidence fell for the eighth consecutive month in August, as high interest rates, ongoing supply chain issues and high house prices continue to exacerbate housing affordability issues. In another sign that the declining housing market has not bottomed out, builder confidence in the newly built single-family home market fell six points in August to 49, marking the first time since May 2020 that the The index fell below the key balance measure of 50, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) released today.

“The continued growth in construction costs and high mortgage interest rates continue to undermine market confidenceor single-family home builders,” said NAHB President Jerry Konter, a builder and developer in Savannah, Georgia. “And in a worrying sign that consumers are now sitting on the sidelines due to high housing costs , the August buyer traffic number in our builder survey was 32, the lowest level since April 2014 with the exception of spring 2020 when the pandemic first hit.”

Source: Fx Street

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